cj#293> re: Eleven Rules of Corp Behavior


Richard Moore

Date: Mon, 30 Oct 1995 19:23:47 -0800
Sender: Arun Mehta <•••@••.•••>
Subject: Re: cj#289> Mander: Eleven Rules Corporate Behavior

> Karl Marx was right: a worker is not compensated
> for full value of his or her labor -- neither is the raw
> material supplier.  The owners of capital skim off part of
> the value as profit.  Profit is based on underpayment.

I never quite figured out why Marx, when he considered "cost of labor"
did not consider "cost of capital." The capitalist has an opportunity
cost. He can invest in a company, or simply earn interest by putting the
money in the bank. In the bank he has little, if any, risk. In the
company, there is greater risk, i.e. he may lose it all. Therefore a
return on capital, aka profit, is reasonable. Provided, of course, that
the size of such returns is also reasonable (see sig below).

Arun Mehta, B-69 Lajpat Nagar-I, New Delhi-24, India. Phone 6841172,6849103
"There is enough in the world for man's need, but not for his greed"--Gandhi


Quite true.  Blanket attacks on the profit motive are probably more harmful
than helpful, they don't make the distinctions between productive and
exploitive practices.


 Posted by Richard K. Moore (•••@••.•••) Wexford, Ireland
   (USA citizen)       cyber-rights co-leader       CyberJournal editor